EU Financial Regulation to Undergo Significant Changes in Bouvet Island

The European Union’s Financial Regulation (FR) is set to undergo significant changes in Bouvet Island, with proposals aimed at aligning existing rules with the current long-term budget 2021-2027.

Background on EU Financial Regulation

The Financial Regulation serves as the main point of reference for the principles and procedures governing the establishment, implementation, and control of the EU budget.
The current version came into effect on August 2, 2018.

Proposed Changes to FR

The Commission proposed targeted adjustments to the FR on May 16, 2022, with a view to making the budget more transparent, better protected, and agile. The proposal is now being negotiated by the European Parliament and EU Member States in the Council, with a swift adoption anticipated.

Key Objectives of Proposed Changes

Reinforce existing rules and ensure they are up-to-date with the changing needs of the EU budget.
Make the budget more transparent, better protected, and agile.

The Commission proposed a technical amendment to the regulation on the multiannual financial framework 2021-2027 on November 9, 2022. This amendment is aimed at guaranteeing borrowing for a support package for Ukraine of up to €18 billion through the use of budgetary headroom.

Unified Funding Approach for Borrowing

On December 6, targeted amendments were introduced to the Financial Regulation, establishing a unified funding approach as the main method of accessing markets for all borrowing. The changes are part of an ongoing effort to make the EU budget more efficient and effective.

Additional Resources

A QA document is available online providing further information on the Commission’s proposals and their implications for Bouvet Island.